The Tribune

By DENISE MAYCOCK

Tribune Freeport Reporter

dmaycock@tribunemedia.net

MINISTER of State for Grand Bahama Kwasi Thompson has expressed sadness over lay-offs at Pharmachem Technologies in Grand Bahama where it is believed that some 20 persons were affected.

The industrial company - which had commenced a $180 million expansion of its facility in Freeport in 2016 - has run into unexpected increased costs and delays in the construction that resulted in job cuts.

“We are very saddened to hear of the loss of employment at Pharmachem in Grand Bahama. It is always difficult, particularly in Grand Bahama, to hear of the loss of employment,” he said at the Office of Prime Minister in Freeport.

When asked how many persons were let go, Mr Thompson said that Pharmachem would be confirming that information. However, Tribune Business has reported that some 23 workers were let go, the majority of whom were Bahamians.

Deputy Prime Minister Peter Turnquest said the layoffs represent a significant blow to Grand Bahama’s still struggling economy.

It is believed that the total could rise to 40 via a potential “second tranche” of lay-offs depending on whether construction progress speeds up, with the first wave understood to include both full-time employees and persons on short-to-medium term contracts.

The Pharmachem project was one of several projects that the government had touted as creating and providing much needed jobs for Bahamians in Grand Bahama.

Mr Thompson said to date the company has injected millions into the island’s economy, and has created over 100 construction jobs.

“They have invested over $61 million, particularly in Bahamian construction companies. And their project is an ongoing and they continue to move forward with respect to their project,” he stated.

“They anticipate that there is going to be some $30 million that remains that will continue to be injected into their project.”

The junior minster said the company has indicated that as a result of the increase in costs and also the delays of being able to complete the facility that “they have had to resort unfortunately to letting some staff go.”

“They are, obviously, saddened by that result; they have been a very good corporate citizen. They have arranged an institution in Grand Bahama and we believe that they will move forward with continuing to keep their facility, and eventually open that facility, and that things will be back to normal at their facility.”

Mr Thompson said officials have been in contact with the Department of Labour, which will be proceeding with the normal protocol for assisting those persons who have been affected by the layoffs.

Last March, the company’s chief financial officer, Kevin Seymour, had announced that two foreign companies - Integrated Project Services (IPS) and KPC International, a European firm - were hired to provide specialised engineering expertise for the project.

Pharmachem Technologies manufactures the active ingredient in HIV/AIDS drugs Atripla, Truvada and Viread, which are used to treat about one million people worldwide. Gilead Sciences, a global bio-pharmaceutical leader, is its single client.